TENSIONS OVER disputed waters have discouraged potential investors from pursuing energy projects in the Philippines, hampering Manila’s pursuit of an independent energy sector, according to the Energy chief.
“[The conflict in the South China Sea (SCS) is] definitely [affecting us], because no investor will risk millions or billions of pesos when they are not sure if they are secure,” Energy Secretary Sharon S. Garin told Palace reporters on Tuesday in mixed English and Filipino.
She said even the Malampaya gas field, which lies within Beijing’s expansive nine-dash line claim, requires constant monitoring by the Philippine Coast Guard and military to ensure operations remain safe from threats.
“That’s a major activity and a major investment. If you’re in a disputed area or near it, legitimate investors will shy away from that,” she said.
The Philippines has been pushing to tap offshore oil and gas reserves to reduce dependence on imports and shore up energy security. However, repeated confrontations with Chinese vessels in contested waters have raised concerns about the viability of projects in the region.
Despite these geopolitical headwinds, the government remains optimistic that the three new wells of Malampaya could yield gas by late next year, ensuring the electricity supply even beyond Mr. Marcos’ term in 2028.
If drilling results are positive, the new wells could supply electricity for up to 10 years.
Two wells — Camago-3 and Malampaya East — are showing excellent prospects, while the government is hopeful that the third, Bagong Pagasa, will also become an additional source.
Once gas is confirmed, Ms. Garin said connection to the existing Malampaya platform could be completed within a year, enabling power generation from the new wells by late 2026.
Meanwhile, the Energy chief said that the government plans to award eight more gas exploration contracts, including two of the world’s first hydrogen contracts and two for the Bangsamoro Autonomous Region in Muslim Mindanao.
Malampaya, the Philippines’ first and only indigenous gas resource, supplies about 20% of Luzon’s electricity needs and has been producing since 2002.
During an aerial inspection on Monday, Mr. Marcos flew over the platform and drilling ship Noble Viking, which is currently boring through at least three kilometers of seabed at the three sites off Palawan. — Chloe Mari A. Hufana